A drop in earnings at over two thirds of Russian asset managers so far this year is likely to trigger an increase in M&A among boutiques, managers say, adding it would benefit the market, even if progress is slow.

Sberbank Group’s private banking department has made three new appointments to its team in an effort to strengthen this new area of business. Elena Shilina, head of the Sberbank Group’s private banking department, said “new, significant appointments will follow.”

The Russian Ministry of Finance and the Moscow International Financial Centre working group are preparing a number of legislative changes in the hope to increase interest in the Russian mutual fund industry among local investors. Keen to diversify the national gross domestic product away from energy and oil, it is turning its attention to the financial industry.